SPECIAL ACCOUNTS AND ENTRIES 199 



maintaining the household. Deducting this so-called do- 

 nation leaves $300 as the income from the farm proper. 



Conditions arise occasionally which result in a greater 

 credit balance in Household account than the total gain 

 shown by the Loss and Gain account. Under such condi- 

 tions the statement would be presented as in Illustration 

 40, with the farming operations showing a loss. 



ILLUSTRATION 40 



FARM AND INDIVIDUAL INCOME STATEMENT 



(HOUSEHOLD GAIN MORE THAN INDIVIDUAL GAIN) 



YEAR ENDED FEB. 28, 1917 



Fred Trumbull 



Household credit balance as per Loss and Gain account $360.00 

 Less Net Gain as an individual as per Loss and Gain 



account.. 100.00 



Net Loss as a fanner . . $260 . 00 



The figures presented in Illustration 40 show that Mr. 

 Trumbull's Loss and Gain account had a credit balance of 

 $100, indicating a gain of that amount as an individual. 

 This was obtained after considering as a gain the $360 

 " donated" by the household in excess of the cost of oper- 

 ating the household. Accordingly, the operations of the 

 farm show a loss of $260 for the year. 



ILLUSTRATIVE PROBLEMS 



1. J. W. Warner, a tenant farmer, decides to keep a double en- 

 try set of accounts beginning March 1, 1917, using a cash 

 journal and ledger. He also keeps an inventory record, but no 

 entries need be made in it by the student, thus reducing the 

 details of the problem. Special cash- journal columns are as 



